tv Cavuto on Business FOX News October 27, 2012 7:30am-8:00am PDT
. >> neil: all right. ten days and counting until you decide who is in charge of fixing our massive debt. new numbers showing how broke we are. hi, everyone, glad to have you, neil cavuto and forget about the 16 trillion bucks, it sounds like a big number, but maybe it might help you focus on $47,000, according to government data, that each american household share of the debt we owe to foreign countries. in hock, to foreign countries. and 10 grand of that to china alone. so, when you look at those numbers, is it any surprise the world has our number, to ben stein, charles payne, dagen mcdowell and adam lashinsky, dr. payne, great to have you back. >> good to be here. >> the u.s. government is flat broke, but the public isn't
broke, that's the shame our average share of the debt that the government wildly throws away and spends like crazy and can't put on your, on any kind of control of, but this is where we are, this is the inflection point, where we are, at the moment of truth where we keep running this up we're asking americans you want the total to be more than that. essentially we've become a total welfare country, a total welfare state unless somehow the american public puts their foot down, government won't do it. >> what i don't like about it, it does put it in a darkly human maybe selfish conscious, this is our share, to folks abroad. >> just to folks abroad. but two-thirds of our debt is held by. >> we owe ourselves. you figure you owe it yourself -- well, i'm not going to say it. this i have to pay. >> and what you have to pay back. good point, but in order to fix it people are going to have to give up something, whether it's some tax break, whether it's spending on certain things that they love, when is the day going to
arrive that people are willing to do that? maybe it is this year, i thought it was two years ago, that there would be something different and frankly, even with a lot of the the tea party candidates moving in, we didn't see that much movement when trying to fix our financial situation in d.c. >> ben stein? >> well, because we-- people aren't willing to raise taxes there's not enough to cut, there's a discretionary funding. and a huge majority of these expenditures are fixed by law or flew defense we absolutely need. i think a bigger question, why are these foreigners especially very clever, extremely well-versed foreigners willing to buy some of our debt and must see some value that maybe we're too modest and self-efacing to see ourselves. obviously, this country has tremendous value to the rest of the world. >> neil: you're right. the modesty is what i've always liked about myself. (laughter) >> you know, adam, you know why i think they're investing here, nothing to do with al
truism. and we might stink, but the world stinks more, so, cash finds a haven here, i'm not-- you know, saying harmful things about the country, but i'm just saying, financially, compared to the rest of the world. we just don't suck as much. so, there's a big amount of capital that comes here as a result. what do you think. >> absolutely correct, neil. >> neil: it is? >> i mean we should take-- >> i made that up then and there. >> i think i made it up. >> like your humility very much. neil, about yourself. if there's, i mean, of course, we should get our spending in line, charles, of course, we should cut down our debt and of course we need to be making progress for people lending us money. you're right, the chinese, for example, invests here because they can't do better anywhere else and furthermore we've got their money, we should be happy about that, they can't just take their money back, everyone says, well, the
chinese are going to call their loans, no, they're not. they're not going to put that money someplace else. >> first of all, i disagree. i think the world is on fire like it's never been in the history of mankind. we're so myopic about america and europe, not talking about unemployment in russia, indonesia, peru, chile, africa, sell 300 million cell phones there, the worreworld ha been on like this. >> and just-- >> hold on one second, adam. we're living off our reputation, believe me the rest of the world is on fire and if we sit back and think we're the only game in town forever, it's a gigantic mistake. >> neil: and i knew it was a mistake not to lead with the chile thing, i'm kicking myself for not doing it. dagen, what do you think? >> i think we're drunk on a sense of comfort. it's dangerous because, again, we aren't worried about foreign nations dumping our debt or not buying any more of it and we continue to borrow
money from those very people to spend it and the day will come, i don't know what triggers it, but the day will come. >> it's sort of like waiting for a financial-- and to adam and charles' point, kid about it, but we sort of pretend, well, we'll always have this money coming our way because where else will it go, well, increasingly there are other options maybe not as big a liquid a market of ours to at least diversify. and no less than ben stein, one of the greatest financial minds in the country, always urging diversification and why he has all of these great funds he recommends and everything else and i think the world is going to increasingly look at diversifying and that will hurt us, will it not? >> as well it should, but that's been going on roughly since the 1950's, when after world war ii, we were the only economy that mattered. of course we're not the only economy that matters, charles, all of these great success stories you mentioned are just that, but, it's like a big investor trying to put money into a fund, you can't put enough money into those
countries. we still have a very good economy here, a growing economy. and with some severe problems that we need to address and we will. and what we'll deal with this problem best, neil is the economic growth and we're getting it, just not getting enough of it. >> all right, ben stein, final point? >> i don't understand where charles is coming from, we have been talking about the rest of the world economies like crazy and there are enormous inflows of money froms u.s., japan, china, the rest of the world in the meantime we are the biggest game in town even if our money is worthless and the other people's money is even more worthless. >> neil: i don't know, there might be a point, charles, i want to you respond, and snuck that in on you, that there are other options, you're saying, right? >> there are other options, for foreign direct investment is exploding around the world and if we rest on our laurels we are going to wake up one day and it's going to be too late. >> neil: all right, and back on that-- >> and that never happens
and-- >> hold back-- >> a happened to spain, happened to great britain, it homed to rome, quite a few countries. >> it happened to rome? >> well, they rested on their laurels, come on. >> and rome fell because of excess debt. >> all right. >> i beg you not-- >> and guys, i beg you not the to go into roman history, okay? and i'm just asking and saying this as an italian. and all right, the campaigns are going full speed and so are we. we're going to be doing double duty next week ahead of the election and starting at 10 a.m. eastern tim special cost of freedom, your ballot, your bucks. i've been practicing that, not to screw it up. and then we're back on sunday for a live your world at 4 p.m. eastern time, and this street is all about your money and we're all over your money. and we're all over on fox business as well. it was the place to go for the debate, for the conventions and now the police to go, election night. all kicks off at 6:55 p.m. why 6:55, do we know, dagen?
>> don't look at me, it's your show. >> neil: no, it could be, like all the baseball games start at 8:07, okay. >> and the first polls close and you need the five minutes to, sort of-- >> the first polls. >> and blow some air. >> okay. there you go. and this should encourage you that the host is on top of all of these developments, but by the way, i do know this, that once we're on, he we won't leave until we have a winner, which could be 2 a.m., 3 a.m., 4 a.m. doesn't matter. as long as it takes, it could be like the end of the jerry lewis telethon. with singing. the most important election of our time and other business networks say it, we mean it, we'll stay until it's resolved. and every last american, i'm not talking about these guys, i am talking about these guys. what democrats and republicans can learn from apple and microsoft, getting america back on track.
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>> the fox news weather alert. i'm ana kooiman. the east coast braces for what can be one of the worst storms in decades. after a downgrade this morning, sandy regained hurricane strength. high wind and heavy rain could hit states from washington to maine. the caribbean seeing the worst of the damage at least 43 people are dead. meteorologist rick reichmuth tracking it from the fox extreme weather center. good morning. >>. >> rick: yeah, we're predicting a storm like most of us have never seen. it's a hurricane moving off to the northeast, but this is different, it's going to be mixing with a storm coming off of the main land and it's going to explode into an incredibly strong storm bus of that we expect to see major coastal flooding and going to bring a lot of damage to the beaches of new jersey, long island, potentially across areas of massachusetts and
maine and also long duration rain event so a lot of people getting four to eight inches of rain and it's going to cause incredible inland flooding and some areas, isolated might see over ten inches of rain as well, but we're going to be dealing with winds, for over 48 hours and that means so many of the trees still have leaves on them are going to be falling over and seeing a lot of power outages, potentially power will be out for weeks, to many of the people because i think we'll see so much in the way of power outages, one thing, to watch, also, is the potential for a major storm surge, current track bringing the storm in cs parts of central jersey, that would funnel a lot of water in towards new york harbor as well as in towards the long island sound and water doesn't have anyplace to go so we're dealing with potentially a significant flood threat in across areas of new york city which would certainly be a major problem for us. however you slice this, a lot of people across the mid atlantic and the northeast are going to be dealing with a storm, but they likely haven't seen in many, many years, anna. >> thank you, rick. you can keep track of it on
our website foxnews.com, i'm anna kooiman. now, back to cavuto on business. >> neil: forget about these guys going at it for your vote. they've got nothing at it on these guys going for your wallet. apple and microsoft playing a game of point, click and rumble. and unveiling tablet devices and pushing each other to new heights in a game of nerds gone wild, i guess. the nerds are winning and people are lining up and buying each of the products. adam, a lesson for washington or too early it tell? >> well, it's a rough comparison to compare two profit making companies with government, but the fact is-- >>. >> neil: take it as a given that's what i do and play along, go ahead. >> and i will, neil. (laughter) >> especially in the case of microsoft, it's really admirable that this company that has been lose for about ten years now keeps coming back and trying again. not just trying again, but
trying with a new fresh approach doing a tablet computer. i don't know if they're going to succeed. it looks snazzy and they're putting money behind it and trying to have new, fresh ideas and yes, i think our government, both of our parties could learn from na example. >> and finally come around to our way of thinking here. but, ben stein, do you think that technology, let's say, a bunch of people going to a best buy and more inclined to buy products like this, is there a spillover affect in i think it's generally limit today that sphere and doesn't mean people buy more sweaters or-- >> i think it's very much limited to that sphere, but i think to your basic point, the energy initiative, creativity of people in the private sector who stand to make a great deal of money and prestige by creating something new, useful, wonderful, good looking and the computer wars, that's an overwelcoming incentive which the ordinary bureaucrat doesn't have. it's a shame and it would be nice if the bureaucrats could be incentivized in some way,
but to take the minds of the person out of that, and compare it with the person out of commerce. >> apple-- >> i'm trying to think who was more offensive of my basic line of thinking. i think that ben was more in line until that zinger at the end and drew me in and says, okay, here. but go ahead. >> but apple, steve jobs defined the new apple by deciding what we needed and wanted before we even knew it. and that was going on for more than a decade. >> and before we knew it, that's a very good added line, before we even know it. >> very good line. >> a great line. >> what changed in washington over that time, did they take one lead from what steve jobs did? no. you look at the websites, just for all the government agencies and it's 1998, and not in a good way. and this is one basic example.
and-- >> and like 1998, is ancient history. >> it kind of is, neil, yeah. >> in the technology world it is. >> on the internet. (laughter) >> talk to my daughter, oh, my god, dad, that's so second bush term. >> and i've got to be honest, that new alanis moreset cd you were telling me about. i don't want to be the one-- >> all right, all right. >> here is the bottom line, these companies are accountable, they're held accountable and you know, the thing that the private sector and the government have in common, they can gussy things up. and they can have commercials and packages. >> neil: and food stamps. >> politicians can look great. ultimately if the company does not have something the public wants, it will go out of business, you can't say the same for politicians. and retreads come up all the time and people get entrenched for some reason their constituents never vote them out even if they're the
poorest constituency in the country. even the most illiterate. no matter what, they get in there and shake a few hands and vote them back in. it's nuts. >> eight of ten do, from the house, it's interesting, what do you make of that. but we all, but what most of us grew up watching the democrats were dominant in congress for decades and they've got thrown out and it's happened quite a few times in the last 20 years, and politicians are accountable to the voters and they do get voted out all the time. and these companies, yeah, they're accountable either make money or they don't. >> okay. >> (laughter) >> all righty. we'll go back to the planning board next week. up next, does anyone remember this, remember this, i know the nature of the machines, they're not going to record any, but there is going to be an image and a saved image, this is what i wear underneath my outfit so you guys know. >> you're a rebel, neil. >> bottom line or bottoms
not in this economy. we also have zero free time, and my dad moving in. so we went to fidelity. we looked at our family's goals and some ways to help us get there. they helped me fix my economy, the one in my house. now they're managing my investments for me. and with fidelity, getting back on track was easier than i thought. call or come in today to take control of your personal economy. get one-on-one help from america's retirement leader. >> coming up the tsa finally those full body scan herbs, no pictures of you in the birthday suit. i told you
scansers are on the way out and swapping the machines showing you in your birthday suit for ones that don't take as graphic picture. the whole point is defeated. you might want to hide your eyes. those skoners cocanners, 42 1/2n bucks, available on ebay or for parties? charles payne, what do you think. >> my fear is that that thing will get stuck because i'm claustrophobic, 43 million dollars, that's nuts. listen we talk about this and i think it should get back to the idea real professional private outside, someone who understands x's and o's and the bottom line dove-tails perfectly with what we're talking about. >> charles, government took control of airport security because of 9/11. it was and private and president bush is the one who had government take over security.
>> how do you feel about the machines going? >> i think it's the government working with the individuals the machines they're getting rid of are the ones with x-ray radiation and the ones they're replaced with should be faster and makes every flyer's life easier and potentially less, and not the bulges. >> that was not directed at awe. >> neil: a little offensive, okay, okay. adam some argue that the new machines are not as revealing and defeats the purposes. >> they're moving them and-- >> they're like old atari machines like game rooms, go ahead. >> they've done a really, really good job of keeping us safe since 9/11, they're doing a good job, and keep it in their hands and not private hands where they're going to cut a budget and jeopardize our safety. >> neil: ben? >> i agree, no matter what is
revealed i want to be some and the airplane. no matter what is revealed, i don't want anyone on a knife. and my wife carried a gun shaped cigarette lighter on to an airplane not long ago and my son carried firecrackers on to airplane not long ago. >> why was he carrying firecrackers? god knows. >> you just alerted homeland security anyone named stein is a risk. >> but i'm just saying, i don't care about the invasion of privacy, i don't want the plane to blow up. >> always request a full body patdown. >> i do, sure, it's the way to go. >> and guys, i want to thank you and dagen particularly want to thank you very, v much. and the bulge comment outstanding. >> did any of you see this? and maybe you didn't. this is-- thank you for reminding me of this. this is the president what
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>> stocks that win. >> go to any hospital they need equipment and i like it and i still love it >> adam. chevron. neal inexpensive and healthy dividend and a safe stock. >> i like the brazil atm and i love brazil and it is talented people with a lot of minerals and a long-term play . >> he put brazil ahead of peru. >>